SoftBank Shares Slide as China Blocks $5.4 Billion Robotics Deal

Shares of Japan’s SoftBank Group plunged on Thursday after China blocked its planned $5.4 billion acquisition of the robotics division of Swiss engineering company ABB. SoftBank shares fell approximately 6.8 per cent as investors reacted to the decision, which threatens one of the company’s major artificial intelligence expansion plans. The acquisition was intended to strengthen SoftBank’s position in industrial robotics and support its broader strategy of combining artificial intelligence with physical machines.

China’s National Development and Reform Commission reportedly prohibited the transaction following a foreign investment security review. Although the deal had progressed through competition-related reviews, it still required approval from Chinese authorities because of ABB’s significant operations in the country. Regulators reportedly raised concerns about sensitive technology, intellectual property, manufacturing capabilities and the possibility of Chinese robotics data being transferred overseas. China represents a major market for ABB’s robotics business, making regulatory approval essential to completing the acquisition.

The setback creates difficulties for SoftBank founder Masayoshi Son, who has been pursuing an ambitious strategy to build businesses around artificial intelligence, robotics and advanced infrastructure. The acquisition was expected to provide a foundation for Roze AI, SoftBank’s planned initiative focused on applying artificial intelligence to physical environments. The company is now reportedly exploring possible solutions and maintaining discussions with Chinese authorities, although the future of the transaction remains uncertain.

The decision also highlights China’s increasingly strict approach to foreign acquisitions involving sensitive technology and data. It follows Beijing’s move to block Meta’s acquisition of artificial intelligence startup Manus, demonstrating the regulatory challenges facing international technology companies seeking access to Chinese-developed capabilities. For SoftBank, the failed transaction comes amid wider investor concerns about its substantial AI investments and financing commitments. The company must now reassess its robotics expansion strategy as competition and regulatory restrictions reshape the global artificial intelligence industry.